The Nigeria Customs Service (NCS) has formally acknowledged the directive from the Federal Ministry of Finance ordering the suspension of the 4% Free-on-Board (FOB) levy on imported goods. While the Service has received the instruction, it has not immediately suspended or removed the charge. Instead, Customs has indicated it is consulting with its supervisory ministry to obtain clear guidance on the next steps.
According to the Service, discussions with the Ministry of Finance are already in progress. These consultations are expected to clarify how the directive will be implemented and whether alternative measures will be introduced to sustain Customs operations during this period. This means the 4% FOB levy technically remains in place until specific instructions are issued on how the suspension should take effect.
The NCS emphasized that it remains committed to fulfilling its statutory duties, particularly revenue collection and trade facilitation, while also addressing concerns raised by stakeholders. For importers, exporters, and licensed clearing agents in Nigeria, this development is significant. Many are monitoring closely to see whether any adjustments to charges or operational processes will be announced in the near future.
Clarifying Misconceptions About the 4% FOB
In response to widespread reports suggesting that Customs only recently introduced the levy, the Service clarified that the 4% FOB was not a new initiative. Rather, it was established by Section 18(1)(a) of the Nigeria Customs Service Act, 2023, which mandates “not less than 4% of the free-on-board value of imports according to international best practices” as a statutory funding mechanism for Customs operations.
This legal foundation shows that the levy was backed by legislation, not created arbitrarily by Customs.
Despite the uncertainty surrounding the suspension directive, the NCS assured the trading public, freight forwarders, and international partners that its operations will continue seamlessly. The Service reiterated its commitment to efficient service delivery, international best practices, and supporting Nigeria’s economic growth through consistent trade facilitation and revenue generation.
Conclusion
The acknowledgment of the suspension directive marks an important step, but until practical implementation guidelines are issued, the 4% FOB charge remains active. Businesses involved in imports and exports of general goods and cargo, should stay alert for updates as consultations between Customs and the Ministry of Finance progress.
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